Both these appeals arise under the Employees’ State Insurance Act. The appellant herein is the Mahalakshmi Oil Mills, carrying on the business of manufacture of oils in the city of Madras. The Employees’ State Insurance Corporation, through its Regional Director, called upon the appellant to contribute employee’s share of contribution as required under section 40 (1) of the Employees’ State Insurance Act at rates provided under section 39 read with Schedule I of the Act, for a period commencing from 6th September, 1960 to 28th July, 1962, approximately amounting to Rs. 1,138. As the appellant has not paid this amount the Employees’ State Insurance Corporation have filed the application, E.I.O.P. No 44 of 1962, out of which C.M.A. No. 223 of 1963 arises. Equally the appellant filed E.I.O.P. No. 2 of 1962, out of which C.M.A. No. 222 of 1963 arises, for a declaration that it is not liable to pay the contribution as claimed by the Employees’ State Insurance Corporation.

When the matter came up before the Tribunal, the First Assistant Judge, City Civil Court, evidence was adduced by the appellant that there were not twenty persons working in the factory as claimed by the Insuran